Rebound in inflation forecast

China’s inflation is likely to have seen a modest rebound in June, according to forecasts by research agencies ahead of the official announcement of the figure next week, but economists said Monday there will not be further inflationary pressure amid a cooling economy.

The consumer price index (CPI), a main gauge of inflation, is expected to rise to 2.6 percent for June, driven by rising pork prices and a low base of comparison last year, Tang Jianwei, a senior macroeconomic analyst at Bank of Communications, told the Global Times Monday.

In May, the CPI reading rose by 2.1 percent compared to a year earlier, according to data from the National Bureau of Statistics (NBS).

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Li Qiaoyi via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/bXzWTsuDHeY/

China boosts financial support to small firms, rural areas

The People’s Bank of China (PBOC) said Monday that it has arranged a 12 billion-yuan (about 1.94 billion dollars) re-lending quota to boost financial support for small and micro-businesses and rural areas.

Re-lending is a monetary tool used by the PBOC, the country’s central bank, to increase financial institutions’ liquidity and guide credit flows.

The central bank requires that funds from the quota be credited to small and micro-businesses, as well as the agricultural sector, rural areas and farmers.

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English.news.cn via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/PLI8-ZyB4F0/

China starts probe into EU wine dumping

CHINA yesterday formally launched an investigation into whether the European Union is subsidizing and dumping wine in the Chinese market, the latest move in a series of trade disputes.

The Chinese government had initially targeted the European wines favored by its growing middle class hours after the European Commission, the EU’s executive body, levied in June punitive tariffs on Chinese solar panels.

The EU accuses Chinese manufacturers of dumping billions of euros worth of panels at below-production cost, and has warned the duties would rise further unless a negotiated solution was reached by early August.

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Shanghai Daily.com via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/WKBoLXNoL_U/

China Probes U.K. Pharmaceutical Firm GlaxoSmithKline After Corruption Claims Aired

Police in China have reportedly detained an unknown number of employees for U.K. pharmaceutical giant GlaxoSmithKline GSK +1% amid allegations of improper payments made to health officials. State media said Monday that police in the city of Changsha were investigating senior management at Glaxo for suspected “economic crimes“. Corruption cases are in this vague category. The South China Morning Post reported that Glaxo staff in Beijing, Shanghai and Changsha had been detained since last week and that a foreign finance manager had been held in Shanghai, the firm’s China headquarters. A call Monday to Glaxo’s UK media relations office wasn’t immediately returned.

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Simon Montlake, Forbes via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/dq9aCGWKxyQ/

China state media blames Syria rebels for Xinjiang violence

(Reuters) – Chinese state media on Monday blamed Syrian opposition forces in unusually specific finger pointing for training Muslim extremists responsible for the deadliest unrest in four years in China’s far-western region of Xinjiang.

China has traditionally blamed violence in Xinjiang, home to Muslim Uighurs, on Islamic separatists who want to establish an independent state of “East Turkestan”.

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Sui-Lee Wee, Michael Martina and Li Hui, Reuters via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/9L0CYfcV17Y/

Thousands brave typhoon rains demanding China honor Hong Kong democracy pledge

(Reuters) – Tens of thousands braved typhoon rains on Monday to demand China live up to its promise to allow fully democratic elections in Hong Kong in 2017 amid mounting fears of increased meddling by Beijing’s Communist Party leaders.

The former British colony returned to Chinese rule on July 1, 1997, with the promise of universal suffrage as an “ultimate aim” in its mini-constitution, making it potentially the first place on Chinese soil to enjoy fully democratic elections.

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bljworldwide via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/TvxpXI11yaE/

Economist: Chinese people’s incomes may hit $12,000

A renowned economist has said that the income per capita in China will reach 8,800 dollars in 2020, and may even hit 12,000 dollars, which would enable China to become a high-income country by UN standards.

Justin Yifu Lin, former chief economist at the World Bank, made this remark at the ongoing 3rd Global Think Tank Summit in Beijing on Saturday.

Justin Yifu Lin revealed that China’s GDP in 2020 is expected to be double of that in 2010. Specifically, unskilled workers who now earn an average of roughly 400 dollars annually would see their yearly income rise to 1000 dollars in 2020.

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CRI Online via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/BWqFiEuJw1E/